Transactions
The right side of a T account
What is credit?
The increasing side of an Asset
What is Debit or Left?
When services are sold, this account is affected every time
Transactions are recorded in a journal in this order
What is chronological order or date order?
Checks, Sales Invoices, Memos, Receipts
What are source documents?
When a business pays for insurance, Prepaid Insurance is increased by this.
What is a debit?
The decreasing side of Supplies
What is credit or right?
When the owner withdrawals Cash from the business, what two accounts are affected
What is Drawing and Cash?
To correct an error in a journal, erase the incorrect item and replace with the correct item...true or false
What is false?
An invoice used as a source document for recording a sale on account
What is a Sales Invoice?
When a business receives revenue, Sales is increase by this...debit or credit
What is credit?
The normal balance of the Capital account
What is a Credit or right side?
When 1500 cash is received on account, _____ is increased by a debit and _________ is decreased by a credit
What is Cash and Accounts Receivable?
(must be in that order)
A transaction recorded in a journal is considered a permanent record...true or false
What is true?
A form on which a brief message is written to describe a transaction
What is a Memorandum (Memo)?
When cash is paid for rent, Rent Expense is increased by this
What is a debit?
The increasing side of an expense
What is Debit or Left?
Increasing side of a liability or capital account
What is Credit or Right side?
Transferring information from a General journal entry to a ledger account
What is posting?
A source document ordering a bank to pay cash from a bank account
What is a check?
When services are sold on account for $500, these two accounts are affected
What are Sales and Accounts Receivable?
Increasing side of a Drawing account
What is Debit or Left side?
When services are sold on account for 500, ________ is increased with a debit, and ________ is increased by a credit
What is Accounts Receivable and Sales?
(must be said in that order)
A group of accounts--this contains all accounts needed to prepare financial statements for a business
What is a Ledger or General Ledger?
A business form giving written acknowledgement for cash received
What is a receipt?